Barnes & Noble Education (NYSE:BNED – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Barnes & Noble Education and Stitch Fix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barnes & Noble Education | 0.98% | 7.92% | 2.29% |
| Stitch Fix | -1.43% | -9.35% | -3.78% |
Volatility and Risk
Barnes & Noble Education has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barnes & Noble Education | 1 | 1 | 2 | 0 | 2.25 |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
Barnes & Noble Education currently has a consensus price target of $17.25, indicating a potential upside of 41.79%. Stitch Fix has a consensus price target of $5.12, indicating a potential upside of 42.76%. Given Stitch Fix’s higher possible upside, analysts plainly believe Stitch Fix is more favorable than Barnes & Noble Education.
Insider and Institutional Ownership
38.5% of Barnes & Noble Education shares are owned by institutional investors. Comparatively, 71.0% of Stitch Fix shares are owned by institutional investors. 1.2% of Barnes & Noble Education shares are owned by insiders. Comparatively, 16.1% of Stitch Fix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Barnes & Noble Education and Stitch Fix”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barnes & Noble Education | $1.71 billion | 0.25 | $16.87 million | $0.47 | 25.89 |
| Stitch Fix | $1.33 billion | 0.36 | -$28.74 million | ($0.08) | -44.88 |
Barnes & Noble Education has higher revenue and earnings than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Barnes & Noble Education, indicating that it is currently the more affordable of the two stocks.
Summary
Barnes & Noble Education beats Stitch Fix on 9 of the 14 factors compared between the two stocks.
About Barnes & Noble Education
Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.
About Stitch Fix
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
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